CDM AND REFORESTATION PROJECTS

IN BRAZIL

Experiences, difficulties and potential

Magno Botelho Castelo Branco, PhD

BACK IN 2000, EVERYONE AGREED AT FIRST...

There’s a huge potential for A/R CDM projects world wide, and Brazil would benefit from this project scope.

IN 2010...

POTENTIAL FOR A/R CDM IN BRAZIL

Restoration of legally protected areas (Riverside forests and Legal Reserve);

Legal Reserve: 20% (Atlantic forest), 35% (Cerrado), 80% (Amazon).

Forests dedicated to supply biomass to renewable energy production;

Renewable charcoal production for the Pig Iron Industry

RESTORATION OF LEGALLY PROTECTED AREAS

44,000,000 hectares of Legal Reserve to be restored (World bank 2010);

More than 5,000,000 of riverside forests to be restored;

Huge potential of carbon removals due to Brazil’s soil and climatic conditions

HOW MUCH CARBON?? SIG MODELLING IS THE ANSWER..

CASE STUDY –

AES TIETÊ PROJECT

RESTORATION OF 14,000 HECTARES

AES TIETÊ PROJECT

One of the first proposals of A/R CDM in the world;

Methodology development begun in 2003

Expected net removal of 5.2 million tCO2e -

370

tCO2e/ha;

Benefits for biodiversity conservation and ecosystem services;

Reduction of environmental liabilities;

Reduction in siltation of reservoirs and maintain the volume of water and power generation.

AES TIETÊ PROJECT

Not yet registered (November 21, 2010)

FORESTS DEDICATED TO ENERGY PRODUCTION

Obtain energy through renewable biomass supplied by dedicated plantations;

Relatively low cost deployment of maintenance;

Two possible sources of accreditation

Carbon removed from the atmosphere (plantations)

Subject to the conditions of applicability of afforestation and reforestation under the CDM

High potential for carbon sequestration -

27 to 58 tCO2e/ha/ano

135-290 tCERs / ha for each scan (5 years)

Energy production (substitution of fossil source)

CASE STUDY –

UTE RONDON II

Currently in the process of validation;

24 MW of capacity -

4 consumed in the plant

itself;

10,000 hectares of eucalyptus –

2,000 / year

10 years of accreditation

CASE STUDY –

UTE RONDON II

Internal Rate of Return:

Without CDM: 8.2% With CDM: 10%

100,000 CERs / year

Credits earned by the displaced fossil energy

FORESTS DEDICATED TO SUPPLY RENEWABLE CHARCOAL FOR THE IRON INDUSTRY

Substitution of coal coke

2,700,000 hectares of plantations would stop charcoal-gathering oriented deforestaion by 2030 (World Bank 2010);

The Plantar Project:

11,000 hectares of eucalyptus plantations;

Biomass will be used to generate thermal energy as well as a reducing agente for iron manufacturing

A/R PROGRAMME OF ACTIVITIES IN THE BRAZILIAN COOPERATIVE SYSTEM

Funded by the British Embassy;

Main goal: to help rural cooperatives to eliminate environmental liabilities related to forest cover;

20 hectares (pilot-project);

Development of PoA and first CPA. All other costs should be undertaken by the cooperative system.

Project comprised capacity building and provided basic understanding of climate related issues.

RESULTS

17 small landowners in the pilot-project

20 hectares of riverside areas restored.

A/R CDM ACTIVITIES: WHAT’S HAPPENING?

Market uncertainties: tCERs and lCERs

Legal uncertainties: Brazil’s Forest Code under attack;

The Permanence Dilemma;

EU ETS???

Huge development AND monitoring costs;

PERSPECTIVES

First A/R CERs will hit the market in 2011;

CDM life after 2012

Brazil Forest Code

REDD

THANK YOU!!!

magno@iniciativaverde.org.br